Qualification Survey

Apply for Tax Incentives

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Apply for Tax Incentives

To ensure seamless processing of your Tax Incentives application, we would like to ask a few questions to determine your eligibility and better assist you. Rest assured, all responses will remain confidential and will not be shared with any outside parties. Completing this will take only about two minutes. Thank you.

Available fiscal incentives	For domestic market enterprises
Income Tax Holiday	4–7 years, depending on location and sectoral tiering
Enhanced Deductions Regime (EDR)¹ (subject to a reduced corporate income tax rate of 20% based on net taxable income)	Maximum of 17 years for IPA-approved projects or 27 years for FIRB-approved projects. The EDR may be granted immediately at the start of commercial operations.
Duty exemption on importation²	Time-bound (from the date of registration until the expiration of income tax-based incentives)
Value-added tax (VAT) exemption on importation and VAT zero-rating on local purchases³	Only available for high-value DMEs⁴
Maximum of 2% RBE local tax (in lieu of all local taxes, fees, and charges under the Local Government Code)	During the period of availment of the ITH and EDR, subject to the enactment of a local ordinance

Approving authority	IPA-approved (₱15 billion and below)	FIRB-approved (Exceeding ₱15 billion)
National Capital Region (NCR)	4 ITH + 10 EDR OR 14 EDR	5 ITH + 10 EDR OR 15 EDR	6 ITH + 10 EDR OR 16 EDR	4 ITH + 20 EDR OR 24 EDR	5 ITH + 20 EDR OR 25 EDR	6 ITH + 20 EDR OR 26 EDR
Metropolitan areas or areas contiguous and adjacent to NCR	5 ITH + 10 EDR OR 15 EDR	6 ITH + 10 EDR OR 16 EDR	7 ITH + 10 EDR OR 17 EDR	5 ITH + 20 EDR OR 25 EDR	6 ITH + 20 EDR OR 26 EDR	7 ITH + 20 EDR OR 27 EDR
All other areas	6 ITH + 10 EDR OR 16 EDR	7 ITH + 10 EDR OR 17 EDR	7 ITH + 10 EDR OR 17 EDR	6 ITH + 20 EDR OR 26 EDR	7 ITH + 20 EDR OR 27 EDR	7 ITH + 20 EDR OR 27 EDR

¹ For export enterprise and domestic market enterprise, enhanced deductions include depreciation allowance, labor expense, research and development expense, training expense, domestic inputs, power expense, reinvestment allowance and enhanced net operating loss carry-over (NOLCO).

² Only applies to importation of capital equipment, raw materials, spare parts and accessories directly attributable to the registered project or activity of RBEs, including goods used for administrative purposes.

³ Only applies to goods and services directly attributable to the registered project or activity of an REE or a registered high-value DME, including expenses incidental thereto.

⁴ High value DMEs refer to registered DMEs with an investment capital exceeding ₱15 billion and are engaged in sectors considered import-substituting, or with export sales in the immediately preceding year of at least USD 100 million.

Available fiscal incentives	For domestic market enterprises
Income Tax Holiday	4–7 years, depending on location and sectoral tiering
Enhanced Deductions Regime (EDR)¹ (subject to a reduced corporate income tax rate of 20% based on net taxable income)	Maximum of 17 years for IPA-approved projects or 27 years for FIRB-approved projects. The EDR may be granted immediately at the start of commercial operations.
Duty exemption on importation²	Time-bound (from the date of registration until the expiration of income tax-based incentives)
Value-added tax (VAT) exemption on importation and VAT zero-rating on local purchases³	Only available for high-value DMEs⁴
Maximum of 2% RBE local tax (in lieu of all local taxes, fees, and charges under the Local Government Code)	During the period of availment of the ITH and EDR, subject to the enactment of a local ordinance

Approving authority	IPA-approved (₱15 billion and below)	FIRB-approved (Exceeding ₱15 billion)
National Capital Region (NCR)	4 ITH + 10 EDR OR 14 EDR	5 ITH + 10 EDR OR 15 EDR	6 ITH + 10 EDR OR 16 EDR	4 ITH + 20 EDR OR 24 EDR	5 ITH + 20 EDR OR 25 EDR	6 ITH + 20 EDR OR 26 EDR
Metropolitan areas or areas contiguous and adjacent to NCR	5 ITH + 10 EDR OR 15 EDR	6 ITH + 10 EDR OR 16 EDR	7 ITH + 10 EDR OR 17 EDR	5 ITH + 20 EDR OR 25 EDR	6 ITH + 20 EDR OR 26 EDR	7 ITH + 20 EDR OR 27 EDR
All other areas	6 ITH + 10 EDR OR 16 EDR	7 ITH + 10 EDR OR 17 EDR	7 ITH + 10 EDR OR 17 EDR	6 ITH + 20 EDR OR 26 EDR	7 ITH + 20 EDR OR 27 EDR	7 ITH + 20 EDR OR 27 EDR

³ Only applies to goods and services directly attributable to the registered project or activity of an REE or a registered high-value DME, including expenses incidental thereto.

⁵ Pursuant to Section 301 of the NIRC of 1997, as amended, the President may grant a non-fiscal support package limited to the utilization of government resources such as the use of land, and budgetary support provision under the annual General Appropriations Act.

⁶ Section 301 of the CREATE MORE Act provides that the grant of ITH shall not exceed 10 years followed by SCIT of five percent (5%) or enhanced deductions regime and that the total period of income tax-based incentive availment shall not exceed 40 years.

Available fiscal incentives	For export-oriented projects
Income Tax Holiday	4–7 years, depending on location and sectoral tiering
Special Corporate Income Tax (SCIT) of 5% of gross income (in lieu of all national and local taxes, and local fees and charges)	Maximum of 17 years for IPA-approved projects or 27 years for FIRB-approved projects. May choose between SCIT or EDR, but in no case shall the EDR be granted simultaneously with the SCIT.
Enhanced Deductions Regime (EDR)⁷ (subject to a reduced corporate income tax rate of 20% based on net taxable income)	Maximum of 17 years for IPA-approved projects or 27 years for FIRB-approved projects. The SCIT or the EDR may be granted immediately at the start of commercial operations.
Duty exemption on importation⁸	Time-bound (from the date of registration until the expiration of income tax-based incentives)
Value-added tax (VAT) exemption on importation and VAT zero-rating on local purchases⁹	Effectively perpetual (for the entire registration period as an RBE) After the expiration of the income tax-based incentives, the exporter shall be subject to the provisions of Sections 106, 108, and 109 of the Tax Code for VAT purposes.
Maximum of 2% RBE local tax (in lieu of all local taxes, fees, and charges under the Local Government Code)	During the period of availment of the ITH and EDR, subject to the enactment of a local ordinance

Approving authority	IPA-approved (₱15 billion and below)	FIRB-approved (Exceeding ₱15 billion)
National Capital Region (NCR)	4 ITH + 10 SCIT/EDR OR 14 SCIT/EDR	5 ITH + 10 SCIT/EDR OR 15 SCIT/EDR	6 ITH + 10 SCIT/EDR OR 16 SCIT/EDR	4 ITH + 20 SCIT/EDR OR 24 SCIT/EDR	5 ITH + 20 SCIT/EDR OR 25 SCIT/EDR	6 ITH + 20 SCIT/EDR OR 26 SCIT/EDR
Metropolitan areas or areas contiguous and adjacent to NCR	5 ITH + 10 SCIT/EDR OR 15 SCIT/EDR	6 ITH + 10 SCIT/EDR OR 16 SCIT/EDR	7 ITH + 10 SCIT/EDR OR 17 SCIT/EDR	5 ITH + 20 SCIT/EDR OR 25 SCIT/EDR	6 ITH + 20 SCIT/EDR OR 26 SCIT/EDR	7 ITH + 20 SCIT/EDR OR 27 SCIT/EDR
All other areas	6 ITH + 10 SCIT/EDR OR 16 SCIT/EDR	7 ITH + 10 SCIT/EDR OR 17 SCIT/EDR	7 ITH + 10 SCIT/EDR OR 17 SCIT/EDR	6 ITH + 20 SCIT/EDR OR 26 SCIT/EDR	7 ITH + 20 SCIT/EDR OR 27 SCIT/EDR	7 ITH + 20 SCIT/EDR OR 27 SCIT/EDR

⁷ For export enterprise and domestic market enterprise, enhanced deductions include depreciation allowance, labor expense, research and development expense, training expense, domestic inputs, power expense, reinvestment allowance and enhanced net operating loss carry-over (NOLCO).

⁸ Only applies to importation of capital equipment, raw materials, spare parts and accessories directly attributable to the registered project or activity of RBEs, including goods used for administrative purposes.

⁹ Only applies to goods and services directly attributable to the registered project or activity of an REE or a registered high-value DME, including expenses incidental thereto.

Available fiscal incentives	For export-oriented projects
Income Tax Holiday	4–7 years, depending on location and sectoral tiering
Special Corporate Income Tax (SCIT) of 5% of gross income (in lieu of all national and local taxes, and local fees and charges)	Maximum of 17 years for IPA-approved projects or 27 years for FIRB-approved projects. May choose between SCIT or EDR, but in no case shall the EDR be granted simultaneously with the SCIT.
Enhanced Deductions Regime (EDR)⁷ (subject to a reduced corporate income tax rate of 20% based on net taxable income)	Maximum of 17 years for IPA-approved projects or 27 years for FIRB-approved projects. The SCIT or the EDR may be granted immediately at the start of commercial operations.
Duty exemption on importation⁸	Time-bound (from the date of registration until the expiration of income tax-based incentives)
Value-added tax (VAT) exemption on importation and VAT zero-rating on local purchases⁹	Effectively perpetual (for the entire registration period as an RBE) After the expiration of the income tax-based incentives, the exporter shall be subject to the provisions of Sections 106, 108, and 109 of the Tax Code for VAT purposes.
Maximum of 2% RBE local tax (in lieu of all local taxes, fees, and charges under the Local Government Code)	During the period of availment of the ITH and EDR, subject to the enactment of a local ordinance

Approving authority	IPA-approved (₱15 billion and below)	FIRB-approved (Exceeding ₱15 billion)
National Capital Region (NCR)	4 ITH + 10 SCIT/EDR OR 14 SCIT/EDR	5 ITH + 10 SCIT/EDR OR 15 SCIT/EDR	6 ITH + 10 SCIT/EDR OR 16 SCIT/EDR	4 ITH + 20 SCIT/EDR OR 24 SCIT/EDR	5 ITH + 20 SCIT/EDR OR 25 SCIT/EDR	6 ITH + 20 SCIT/EDR OR 26 SCIT/EDR
Metropolitan areas or areas contiguous and adjacent to NCR	5 ITH + 10 SCIT/EDR OR 15 SCIT/EDR	6 ITH + 10 SCIT/EDR OR 16 SCIT/EDR	7 ITH + 10 SCIT/EDR OR 17 SCIT/EDR	5 ITH + 20 SCIT/EDR OR 25 SCIT/EDR	6 ITH + 20 SCIT/EDR OR 26 SCIT/EDR	7 ITH + 20 SCIT/EDR OR 27 SCIT/EDR
All other areas	6 ITH + 10 SCIT/EDR OR 16 SCIT/EDR	7 ITH + 10 SCIT/EDR OR 17 SCIT/EDR	7 ITH + 10 SCIT/EDR OR 17 SCIT/EDR	6 ITH + 20 SCIT/EDR OR 26 SCIT/EDR	7 ITH + 20 SCIT/EDR OR 27 SCIT/EDR	7 ITH + 20 SCIT/EDR OR 27 SCIT/EDR

¹⁰ Pursuant to Section 301 of the NIRC of 1997, as amended, the President may grant a non-fiscal support package limited to the utilization of government resources such as the use of land, and budgetary support provision under the annual General Appropriations Act.

¹¹ Section 301 of the CREATE MORE Act provides that the grant of ITH shall not exceed 10 years followed by SCIT of five percent (5%) or enhanced deductions regime and that the total period of income tax-based incentive availment shall not exceed 40 years.

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